Para 4.3 — CONSULT_MANUAL

2. There are laid down procedures for delegation of powers of procurement to various competent authorities under different modes as shown in DFPR (Annexure 1). Each procuring entity may also publish its own Schedule of Procurement Powers (SoPP) delegating such powers within the entity. A suggested format for SoPP is given at Annexure 2.

3. The various modes of procurement that can be used in public procurement are (GFR 201741): a) Advertised Modes: The advertised modes of procurement are designed to foster a spirit of healthy competition. These modes, ensure the broadest possible competition by widely publicising procurement opportunities. (Rule 161 GFR 2017):

i) Open Tender Enquiry (OTE): Also known as National Competitive Bidding (NCB), this mode involves inviting bids through public advertisements to maximise participation, for procurement above Rs 50 Lakhs.

4.3 Modes of Procurement 1. Offers from prospective bidders in public procurement must be invited according to a procedure that achieves a balance between the need for the widest competition, on one hand, and complexity of the procedure, on the other hand. Different modes of procurement and tendering systems are used to suit various procurement circumstances to achieve this balance. Various modes of procurement vary the extent of competition (width and specificity of catchment area of bidders) to suit different procurement situations. Mode of Procurement addresses the ‘Right Source’ of the 5Rs.

Chapter 4: Bidding Design for Consultancy Services ii) Global Tender Enquiry (GTE): Also referred to as International Competitive Bidding (ICB), this mode invites bids from international vendors to ensure global competition. There is a restriction on use of this mode below Rs 200 crores. b) Pre-qualification Modes: These modes of procurement are restricted to shortlisted pre-qualified bidders. The shortlisting is done transparently, based on qualification criteria to identify bidders who have the capability to perform the contract. Shortlisting itself is done through wide publicity akin to advertised tenders. i) Pre-Qualification Bidding Mode (PQB): In this mode, only those bidders who meet specific qualifications are invited to submit bids. ii) Approved Vendor Lists (AVL): Procurement is restricted to vendors who have been pre-approved and included on a long-term multi-use list based on their demonstrated ability to meet the required standards. (Please refer to Para 4.7 of the Manual for Procurement of Goods, Second Edition, 2024 for details on the AVL). c) Restricted Modes: In restricted modes, the bidding is limited to known and selected bidders, without the public advertisements seen in advertised modes. Unlike the Prequalification mode, the shortlisting or registration of bidders is based on less rigorous checks of capability and past experience, without relying on wide publicity or stringent qualification criteria. (Rule 162, GFR 2017): i) Limited Tender Enquiry (LTE): This mode invites bids from a select group of suppliers and is used for procurements up to Rs. 50 lakhs. (Please refer to Annexure 15) ii) Special Limited Tender Enquiry (SLTE): LTE type of process applicable for procurements above Rs. Fifty lakhs in exceptional circumstances, where limited competition is justified. d) Nomination Modes: These modes involve procurement from a single source, typically under special circumstances where competition is not feasible or necessary. (Rule 166 GFR 2017): i) Proprietary Article Certificate (PAC): This is used when procurement is required from a specific vendor due to the proprietary nature of the goods or services (say from OEMs). ii) Single Tender Enquiry (STE) without PAC: This allows procurement from a single source without a PAC under specific conditions. In case of Single Tender procurements: 1). a report relating to such awards on nomination basis shall be submitted every quarter to: • The Secretary, in case of Ministries/Departments. • The Board of Directors or equivalent managing body, in case of Public Sector Undertakings, Public Sector Banks, Insurance companies, etc; • The Chief Executive of the organisation where such a managing body is not in existence. 2). The audit committee or similar unit in the organisation may be required to check at least 10% of such cases. e) Shopping Modes: These are used for small-value procurements where formal tendering is not practical. (Rule 154, 155 GFR 2017):

4.4 Tendering Systems 1. Tendering systems are designed to achieve an appropriate balance between the countervailing needs for Right Quality, Right Source, and the Right Price under different complexities/ criticality of Technical requirements and value of procurements. In certain critical and complex requirements, the technical and financial capability of Source of supply becomes an important determinant for value for money. Depending on the complexity and criticality of Technical requirement, Criticality of capability of Source and value of procurement, following types of tendering systems may be used. The various Bidding Systems that are used in public procurement are:

Manual for Procurement of Consultancy Services, Second Edition, 2025 i) Direct Procurement without Quotation: Small purchases (upto Rs 50,000) made directly without soliciting formal bids. (Please refer to Annexure 13) ii) Direct Procurement by Purchase Committee: A committee-based approach for direct purchases, typically used for low-value (upto Rs 5 Lakhs) items. (Please refer to Annexure 14) f) Rate Contracts: Also known as Framework Agreements, are agreements with suppliers/ consultants/ service providers to provide goods or services at pre-agreed rates for a specified period.

4. Applicability, Terms and Conditions, Risks, and mitigations of these modes of procurements (including restrictions regarding GTE mode for procurements below Rs 200 Crore) are detailed in Chapter 4 of the Manual for Procurement of Goods, 2024 which may be referred. For sake of brevity, these are not repeated here.

a) Single Stage Tendering System: i) Single Stage Single Envelop System ii) Single Stage Two Envelops System (Two Bid System) (Rule 163 of GFR 2017) iii) Single Stage Two envelops System with pre-qualification. b) Two Stage Bidding - Expression of Interest Tenders – Market Exploration/ Shortlisting (Rule 164 of GFR 2017)

2. Details of these Bidding Systems are explained in Chapter 4 of the Manual for Procurement of Goods, 2024, which may be referred. For sake of brevity, these are not repeated here. For guidance on the preparation of Request for Expression of Interest (REoI) document for the procurement of consultancy services, please refer to para 5.2 below.